Abstract
Intel (INTC) went public in February 1971 with an IPO that raised $8M (million) supported by an underwriting group of 63 firms, of which fewer than 10 still exist. In March 1986, Microsoft (MSFT) went public with an offering of $58M with 116 underwriters, of which only about one quarter remain in operation in a similar line of business. Apple, Cisco, FedEx, Genentech, Starbucks, and many other firms are examples of small companies that raised growth capital outside of Regulation D via relatively small IPOs that helped them grow to become industry leaders
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That said, if you’re using a broker-dealer (BD) to place your securities, they may be subject to certain FINRA rules that govern how they use certain materials or what can be in them. Always coordinate your marketing efforts with your BD!
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We have discussed here only the exemption set forth in the rules for Reg A+. An issuer can structure its offering to be in a “streetname”, which can also allow one to avoid Section 12(g).
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http://www.sec.gov/Archives/edgar/data/1444706/000115752313000292/a50544928ex99_1.htm . Keating Capital Article dated January 28, 2013.
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This is not to say that Regulation A+ shares are inherently more liquid than Regulation D. In fact, if the Regulation A+ shares do not have a market or little-to-no demand by external investors, there may not be any liquidity advantage. The key point is that through electing to use Regulation A+, the issuer will at least have the option to create early liquidity for their shares, whereas with Regulation D such an option does not exist.
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© 2015 Paul M. Getty, Dinesh Gupta, and Robert R. Kaplan, Jr.
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Getty, P.M., Gupta, D., Kaplan, R.R. (2015). Benefits of Regulation A+. In: Regulation A+. Apress, Berkeley, CA. https://doi.org/10.1007/978-1-4302-5732-5_3
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DOI: https://doi.org/10.1007/978-1-4302-5732-5_3
Publisher Name: Apress, Berkeley, CA
Print ISBN: 978-1-4302-5731-8
Online ISBN: 978-1-4302-5732-5
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